India’s WPI inflation rate fell to an recent low of 0.44% for the year ended March 7, 2009. What is more comforting is the fall in prices of food articles, which greatly eluded the public in the previous declines.
Quoting ToI, the higher base effect along with low demand in the economy is expected to keep inflation in negative territory for 5 to 6 months. This, if happened, will make us witness deflation after a very long time.
One thing that I noticed in WPI is the fall in jet fuel prices by 8%. With this it’s high time that the flight operators reduce their fuel surcharge which currently stands at more than 2000 rupees. And, I guess it would require an intervention from the government to reduce the fuel surcharge amount, which masquerades as ‘taxes’ to the government in flight booking receipts.
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